Introduction To HRM And HRIS PDF

Chapter 1 Evolution of Human Resource Management and Human Resource Information Systems: The Role of Information Technology  Chapter objectives Describe the historical evolution of HRM, including the changing role of the human resources (HR) professional Discuss t...

Chapter 1 Evolution of Human Resource Management and Human Resource Information Systems: The Role of Information Technology  Chapter objectives Describe the historical evolution of HRM, including the changing role of the human resources (HR) professional Discuss the impact of the development of computer technology on the evolution of HRM and HRIS Describe the three types of HR activities Explain the purpose and nature of an HRIS as well as the differences between the types of information systems functionality in an HRIS Discuss how the information from an HRIS can assist in decision making in organizations Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc. 2  NEED FOR HRIS: THE EXTERNAL ENVIRONMENT Government Regulations EEO -1 Report Employee Composition Increased Records and Reports Court Decisions New Laws Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc. 3  Pre-world War II HR department was called “Personnel function” Caretaker activity ( e.g. Record Keeping Manual) No computer technology to automate the records Prevailing management philosophy was scientific management. Very few government influences, labour and child abuses Record keeping is one of the major functions built into the design of an HRIS today Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc. 4  POSTWAR: 1945-1960 Importance Of Employee Morale Systematic efforts began to classify workers around occupational categories; job description Employees started forming labour unions which has led to changing the role of personnel department (systematic record keeping and reporting to governmental agencies) Establishment of specialist divisions, such as recruitment, training and government relations. Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc. 5 POSTWAR: 1945-1960 6  SOCIAL ISSUES PERIOD: 1963-1980 Social Issues Legislation Impact HR Protector Of Employees It was essential to automate the data collection, analysis, and report generation process. The decreasing costs of computer technology versus the increasing costs of employees Intro Of IBM 360, Advent Of MIS Pressure on personnel managers to justify cost increases against productivity improvements 7  SOCIAL ISSUES PERIOD: 1963-1980 Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc. 8  COST-EFFECTIVENESS: 1980-1990s Cost reduction through automation of processes Increase use of HRIS HR Cost Justify Activities Transition from transactional HR activities to traditional and transformational HR activities Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc. 9  TECHNOLOGY ADVANCEMENT ERA (90S-TODAY) Globalization, technological breakthroughs and hyper competition. Strategic HRM (RBV) Use of metrics such as HR BSC, ROI Example, HRP. Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc. 10 Balanced Scorecard (BSC) BSC is a performance management and measurement tool developed in early 1990s. Aims to help managers to achieve strategic goals Measure performance in four perspectives: ✓ Learning and growth ✓ Internal processes ✓ Customers ✓ Financial 11 12  COMPETITIVE ADVANTAGE Three Categories Of Resources: Physical Organizational Human Most Critical Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc. 13  ACTIVITIES OF HR Transformatio nal Wright, McMahan, Snell, & Gerhart, 1998 Traditional Transactional Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc. 14  HR ACTIVITIES & TIME SPENT Transactional (65-75%) Benefits Administration, Record Keeping, Employee Services Traditional (15-30%) Recruitment, Selection, Training, Performance Management, Compensation, Employee Relations Transformational (5-15%) Knowledge Management, Strategic Redirection And Renewal, Cultural Change, Management Development Added Value Wright, McMahan, Snell, & Gerhart, 1998 Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc. 15  Exercise Describe the historical evolution of HRM and HRIS in terms of the changing role of HRM and the influence of computer technology on HRM. Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc. 16 Historical evolution of HRM and HRIS Period Evolution of HRM Evolution of HRIS Pre-world Caretaker function (maintenance of No use of computer technology war 2 employees information) – no HRIS Voluntary transactional HR activities (e.g. Health & safety records) Post-world Mandatory transactional HR activities Computer technology began to war 2 (manual record keeping) emerge. 1945-1960 Emergence of traditional HR activities Military use of computer (e.g. recruitment, compensation, technology little use by large performance appraisals) companies Social era HRM functions expanded Notable advancement in 1963-1980 Transition to strategic traditional HR computer technology (e.g. MIS) activities (i.e. strategic thinking and HR departments were still slow better delivery of HR services) in adopting computer Protector function (development of technology to process employee employees) information more effectively and efficiently Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc. 17  Historical evolution of HRM and HRIS Period Evolution of HRM Evolution of HRIS Cost The overall focus shifted Good use of computer technology effectiveness era from employee (cheaper and more powerful) (1980-1990) administration (i.e. HR departments came under transactional record keeping) pressure to harness computer to employee development technology To improve and involvement (i.e. effectiveness and efficiency in transformational activities. service delivery through cost reduction Technological Focus of the HRM function Widespread dependence on HRIS. advancement era on transformational HR E.g. HR planning 1990 to present activities. Information technology is a key Strategic HRM – use of HR enabler of Strategic HRM Balance scorecards Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc. 18  INTERFACE BETWEEN HR AND TECHNOLOGY IT As A Tool Not A Substitute For People How Might The Changes In Technology Impact The Role And Perceptions Of HR Departments And Professionals? How Might Technology Aid In The Advancement Of Strategic HRM? Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc. 19  HRIS Human Resources Information System (HRIS) Computerized System used to acquire, store, manipulate, analyze, retrieve and distribute information regarding an organization human resource to support HRM and managerial decisions. An HRIS is not simply computer hardware and associated software - It includes people, policies, procedures, and Data. Benefits: Store And Retrieve Of Large Quantities Of Data. Combine And Reconfigure Data To Create New Information. Lower Administrative Costs, Increase Productivity And Response Times. 20  Examples of HR data E.g. Recruitment data, training data, payroll data, benefit administration data… Source to hire, Time to fill, Cost per hire, Careers site conversion, Applicant time, Candidate experience, Time to hire (accept), First year attrition, Quality of hire, Applicants per opening, Selection ratio, Offer acceptance, Application completion ratio, Sourcing channel effectiveness, Time to productivity 21  Questions? Human Resources Information System (HRIS) can be defined as Computerized System used to acquire, store, manipulate, analyze, retrieve and distribute information regarding an organization human resource to support HRM and managerial decisions. Illustrate the previous definition of HRIS HRIS is not simply computer hardware and associated software - It includes people, policies, procedures, and Data. Illustrate the previous definition of HRIS. Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc. 22  HRIS DEFINITION Main purpose of HRIS is to provide service in form of accurate, timely information to aid decision making process. Variety Of Users Strategic (e.g. A company decision to expand by establishing a production facility in a new location) Tactical (e.g. evaluating the efficiency of a training program) Operational Decisions (e.g. helping managers monitor the work time and attendance of their employees) Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc. 23  E-HRM & HRIS Electronic Human Resource Management (E-hrm) aims to serve non-HR staff such as employees and managers uses information technology, particularly the Web, as the central component of delivering efficient and effective HR services technology becomes the nerve centre for conducting HR HRIS involves systems used within HR department itself to improve the HR processes Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc. 24  Why do we need HRIS? Providing a comprehensive information picture as a single, integrated database. Increasing competitiveness by improving HR operations and management processes. Collecting appropriate data and converting them to information and knowledge for improved timeliness and quality of decision making. Producing a greater number and variety of accurate and real-time HR-related reports. Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc. 25  Why do we need HRIS? Streamlining and enhancing the efficiency and effectiveness of HR administrative functions. Shifting the focus of HR from the processing of transactions to strategic HRM. Reengineering HR processes and functions. Improving employee satisfaction by delivering HR services more quickly and accurately Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc. 26  Factors affect the ability of firms to that harness the potential of HRIS The size of the organization, with large firms generally reaping greater benefits; The amount of top management support and commitment; The availability of resources (time, money, and personnel); The ability and motivation of employees in adopting change, such as increased automation across and between functions Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc. 27  INFORMATION SYSTEMS PROVIDING SUPPORT FOR HRM (Table 1.1) Organizational Type of System Major Goal and HRM Example Level Focus Operational Transaction Processing Improved transaction Payroll processing System speed and accuracy Time and attendance entry Improved efficiency in the processing of daily business transactions Automation of routine transactions Reduced transaction costs Managerial Management Information Provides key data to Producing EE03 reports System managers Calculating yield ratios for Supports regular and recruiting ongoing decisions Calculating per-capita Provides defined and ad- merit increases hoc reporting Executive Executive Information Provides aggregate, high- Succession planning System level data Aggregate data on Helps managers with long- balanced scorecard range planning Supports strategic direction and decisions Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc. 28  INFORMATION SYSTEMS PROVIDING SUPPORT FOR HRM (Table 1.1 Cont.) Organizational Type of System Major Goal and Focus HRM Example Level Boundary Spanning Decision Support Interactive and iterative managerial Staffing needs assessment System decision-making Labor market analysis Supports forecasting and “what-if” Employee skills assessment analysis Supports business simulations Expert System Embed human knowledge into Résumé keyword searches information systems Automate decisions with technology Office Automation Designing documents E-mail training room Systems Scheduling shared resources scheduling Communication Collaboration Supports electronic communication Communication support for e- Technologies and collaboration between learning employees Online meetings and shared Supports virtual teams documents HR departmental wikis Enterprise Resources Integration and centralization of Orangery Planning System corporate data Oracle/PeopleSoft Share data across functional Lawson HRM boundaries SAP Single data source and common technology architecture Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc. 29  SYSTEM DEVELOPMENT LIFE CYCLE (SDLC) Five General Phases: (1) Planning (2) Analysis (3) Design (4) Implementation (5) Maintenance Begins With Planning And Ends With Continuous Evaluation Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc. 30  A MODEL OF ORGANIZATIONAL FUNCTIONING Organic model HRIS is critical to the efficient operation of an organization Interrelatedness between the strategic management system, the strategic HRM system, and the performance goals, business and HR are generated during the strategic planning process. Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc. 31  A MODEL OF ORGANIZATIONAL FUNCTIONING The HR Goals Drive The HR Programs That Provide Management The Tools For The Efficient And Effective Use Of Employees The HRIS Has Become Increasingly Important In Supporting The HR Management System As Well As In Strategic Planning HR Metrics And Cost-benefit Results (Value Added And Return On Investment - ROI), Are In Continual Interaction Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc. 32  A MODEL OF ORGANIZATIONAL FUNCTIONING National Culture Impacts Entire Model Through Strong Effects On External Environment External Environment Influences Internal Functioning Of Organization Interaction Between Strategic Management System And Strategic HRM Will Improve The Functioning Of The Organization Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc. 33